RHIM - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.2

📊 Swing Trade Analysis: RHI Magnesita India Ltd (RHIM)

RHIM presents a cautiously moderate swing trade setup, with stable technical positioning and low debt, but weak profitability and valuation metrics. It may suit short-term traders looking for a bounce near support, though momentum confirmation is essential.

✅ Strengths

Technical Support Zone

Current price ₹482 is near DMA50 (₹483) and DMA200 (₹495), suggesting consolidation.

RSI: 50.3 → Neutral zone, with room to rise.

Volume: 1.64L > 1-week average → Slight uptick in interest.

Balance Sheet Strength

Debt-to-Equity: 0.01 → Virtually debt-free.

Earnings Growth

PAT Qtr: ₹46.5 Cr. vs ₹36.4 Cr. → Sequential improvement.

⚠️ Weaknesses

Valuation Concerns

P/E: 53.0 vs Industry PE: 43.0 → Overvalued.

PEG Ratio: -9.10 → Indicates poor growth relative to valuation.

Profitability

ROCE: 7.71% and ROE: 5.62% → Weak capital efficiency.

EPS: ₹9.10 → Modest earnings for current price.

Momentum Weakness

MACD: -2.75 → Bearish crossover.

Price below DMA200 → Long-term trend under pressure.

Institutional Sentiment

DII Holding ↓ 0.43% → Domestic investors trimming exposure.

🎯 Optimal Entry Price

Buy Zone: ₹470–₹475

Slightly below current price, near support and technical base.

🚪 Exit Strategy (If Holding)

Target Exit: ₹510–₹520

Near DMA200 and short-term resistance.

Stop Loss: ₹460

Below recent support to manage downside risk.

This setup suits technically disciplined traders who can monitor MACD and RSI for a reversal signal before entering. Let me know if you'd like help setting alerts or visualizing this trade.

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